Gov't may exempt tourism tax on three-star hotels and below for locals

Malaysians may be exempted from paying the tourism tax for their accommodation in three-star hotels and those rated below. 

Secretary-general of Treasury at the Ministry of Finance, Mohd Irwan Serigar Abdullah said the government is studying the possibility of exempting locals from paying the hotel surcharge.

He, however, said the exemption of the tourism tax is only restricted to three-star hotels and those that are below that rating. 

"We are studying this and it will be announced later," he said when attending an event at Subang.

He added that even if the proposal is approved, the exemption will not apply to foreign tourists.

According to him, the Royal Malaysian Customs Department will be tasked to collect the hotel tax. 

The Tourism Tax Act 2017, passed last April 6, will see the government collect the new tax starting August, at a rate of RM20 for five-star accommodation, RM10 (four-star), RM5 (one to three star), and RM2.50 for non-rated accommodations, including budget hotels. 

Homestays, 'kampung stays' and boarding places will be excluded from the new tax. - Mkini